There are today approximately 9,000 different corporate securities which are actively traded on the New York Stock Exchange, the New York Bond Exchange, the American Stock and Bond Exchanges, the Midwest and Pacific Coast Regional Exchanges, and the N.A.S.D.A.Q. Over-the-Counter Market. There are at least that many additional securities of smaller corporations which are publicly held but less actively traded. A securities broker might well expect to find any of these securities in a customer's portfolio and will, in the regular course of business, have to periodically value these securities and the portfolio as a whole.
The Bunker-Ramo Corporation, among others, currently produces a daily computerized tape listing of the volume, high, low, and last price, as well as earnings, dividends, and other data for the securities on the following exchanges:
______________________________________ New York Stock Exchange Approximately 2000 Securities New York Bond Exchange Approximately 2100 Securities American Stock Exchange Approximately 1300 Securities American Bond Exchange Approximately 250 Securities NASDAQ (over-the-counter) Approximately 3200 Securities Pacific Coast Stock Exchange Approximately 60 Securities Midwest Stock Exchange Approximately 50 Securities TOTAL Approximately 9,000 Securities ______________________________________
There are about 450 mutual funds, and about 2300 government bonds, corporate bonds, and other types of securities which are widely traded but are not currently on the Bunker-Ramo daily listing.
Of the 11,700 securities described above, there are about 30 changes of significance each day. These changes include stock splits, stock dividends, mergers, name changes, ticker symbol changes, new securities listings, transfers of securities from one exchange to another, or delistings.
Bunker-Ramo has assigned to each security in its listing a discrete 7-digit number. This number is known as the Bunker-Ramo security number.
There is today a second numbering system which will probably become the dominant numbering system for securities. This is the Committee on Uniform Securities Industry Practices or CUSIP number. The CUSIP number is a 9-digit alphanumeric number where digits 1 through 6 represent the issuing company, characters 7 and 8 the issue, and digit 9 the check digit.
In addition, each security is assigned a unique "ticker-symbol" comprising one to six characters, usually mnemonically related to the name of the security. This system of abbreviation is more commonly used than the other two by investors, registered representatives, traders, advisers, and "front-office" personnel because it is shorter and easier to remember.
Although both the Bunker-Ramo number and CUSIP number may be used internally, the "ticker symbol" is the customary external method of accessing securities pricing information in any quotation system, and in the printing quotation system making up the invention.
The invention was created to organize the massive data described above, to add additional data as necessary, and to make the information readily available to investment dealers, stockbrokers, banks, investment advisers, mutual funds, pension fund managers, individual investors, and any others having a need to value one or more securities portfolios from time to time.
Using the new technique of computer "time-sharing," the invention makes use of the Service Bureau Corporation's National Time-Sharing System to centralize the securities data described above and the computer programs comprising the invention. Thus the system is made available as necessary to multiple simultaneous users across the nation.
Several ingredients were necessary to create a viable system:
1. Ease of user operation and error correction. PA1 2. A comprehensive, reliable and accurate data base, carefully cross-indexed and cross-referenced. PA1 3. User ability to add readily any security not contained in the data base. PA1 4. A wide variety of report options and formats. PA1 5. Extremely high system reliability to make up for user errors and telephone line problems. PA1 6. Economy of operation. PA1 (1) They are centralized so that branch offices receive slower service. PA1 (2) Although their calculating and printing speeds may be rapid, the turnaround time for a specific task is almost invariably far slower than on a time-sharing system. PA1 (3) They require the repetitive entry of securities price information and other data which can be used on only the single system. PA1 (4) They require highly skilled operators, and the entry of rigidly coded data, often on punch-cards. PA1 (5) Modifications to the system are expensive, difficult, and time-consuming, with the result that the system becomes relatively inflexible. PA1 (6) The quality of printing is markedly inferior to that available from typewriter-like time-sharing terminals. PA1 (1) Inexpensive terminals can be installed in remote branch offices to communicate by telephone with the VALPORT processing computer. PA1 (2) Turnaround time is extremely rapid - virtually instantaneous in some instances. PA1 (3) A centralized securities data base is available to all users at minimal cost. PA1 (4) The system can be operated readily by any competent secretary, and data entry is uncoded, straightforward, and processed directly on the typewriter terminal without punch-cards. PA1 (5) Modifications to the system can be implemented quickly and inexpensively whenever necessary, making the system extremely flexible. PA1 (6) Since valuation reports are produced on a terminal which is essentially an electric typewriter, the quality is extremely high and virtually identical to hand-typing. PA1 1. It allows a complete portfolio valuation to be produced of securities of any description. PA1 2. It allows a typographically accurate schedule to be produced with a minimum of error - far more accurately than can be produced by hand. PA1 3. l It allows a user with moderate secretarial or clerical experience in the securities business, but without experience in computer operations, to operate the system with a minimum of training. PA1 4. It contains a high degree of reliability and redundancy to protect data files from technical problems, and can easily be restarted in the event of inevitable line breaks which occur on a time-sharing system. PA1 **VALSETUP